Eight years on, Zara shuts its only independent 5-storied store in city – The Times of India
Mumbai: The only independent Zara store in India’s financial capital has closed, disappointing numerous fashion enthusiasts in the city. The five-storied outlet, spanning a total area of 51,300 sq ft, was located in the 118-year-old, heritage Ismail building at Flora Fountain in South Mumbai.
Inditex Trent, a 65:35 partnership between Spain’s Inditex and Tata Group’s Trent, which operates Zara stores in India, made the decision due to the outlet becoming economically unfeasible. A notice posted outside the outlet stated: “Please be informed that this Zara store will cease operations after the end of business on 23rd February. We will continue to assist you all at our Zara stores in Mumbai and at Zara.com/in.”
This Zara store in Mumbai was the first to open in 2017, three years before the Covid-19 pandemic. Inditex Trent paid an “ungodly” amount in rent for the space in Ismail building. In 2017, it agreed to a yearly rent of Rs 30 crore, with a five-year lock-in period, marking it as the largest lease transaction by a high-street fashion brand at that time.
With the flagship outlet now closed, Zara’s store count in Mumbai has decreased to three. The remaining outlets are located in shopping malls such as Phoenix Palladium in Lower Parel, Phoenix Market City in Kurla, and Viviana Mall in Thane.
“The operational viability of the independent Zara Flora Fountain store, when compared to other opportunities like the three Zara outlets in the city’s shopping malls and the growing online business, led to the decision to focus resources and investments on those opportunities,” sources said. Retailers worldwide have been re-evaluating their strategies by closing unproductive stores and emphasising their digital presence.
Inditex, the owner of the Zara brand, entered India in 2009 through a partnership with Trent. Initially a 51:49 joint venture between Inditex and Trent, the first Zara outlet opened in Select Citywalk mall in New Delhi in 2010. In fiscal 2024, Inditex Trent operated 23 Zara outlets across India, generating a profit of Rs 244 crore on a revenue of Rs 2,775 crore during the same fiscal year.
Inditex Trent, a 65:35 partnership between Spain’s Inditex and Tata Group’s Trent, which operates Zara stores in India, made the decision due to the outlet becoming economically unfeasible. A notice posted outside the outlet stated: “Please be informed that this Zara store will cease operations after the end of business on 23rd February. We will continue to assist you all at our Zara stores in Mumbai and at Zara.com/in.”
This Zara store in Mumbai was the first to open in 2017, three years before the Covid-19 pandemic. Inditex Trent paid an “ungodly” amount in rent for the space in Ismail building. In 2017, it agreed to a yearly rent of Rs 30 crore, with a five-year lock-in period, marking it as the largest lease transaction by a high-street fashion brand at that time.
With the flagship outlet now closed, Zara’s store count in Mumbai has decreased to three. The remaining outlets are located in shopping malls such as Phoenix Palladium in Lower Parel, Phoenix Market City in Kurla, and Viviana Mall in Thane.
“The operational viability of the independent Zara Flora Fountain store, when compared to other opportunities like the three Zara outlets in the city’s shopping malls and the growing online business, led to the decision to focus resources and investments on those opportunities,” sources said. Retailers worldwide have been re-evaluating their strategies by closing unproductive stores and emphasising their digital presence.
Inditex, the owner of the Zara brand, entered India in 2009 through a partnership with Trent. Initially a 51:49 joint venture between Inditex and Trent, the first Zara outlet opened in Select Citywalk mall in New Delhi in 2010. In fiscal 2024, Inditex Trent operated 23 Zara outlets across India, generating a profit of Rs 244 crore on a revenue of Rs 2,775 crore during the same fiscal year.
